Coastal Financial posts Q2 loss on $68.8 mln credit charge

Coastal Financial (EVERETT)

30/07/2026 12:12

Overview
U.S. community and BaaS bank posted Q2 net loss after $68.8 mln credit expense tied to one partner
Company saw 9% loan growth and higher BaaS program income despite credit expense impact
Management says credit expense is isolated, with capital ratios remaining above well-capitalized levels

Outlook
Company expects continued growth in BaaS partner relationships and product launches for 2026
Coastal Financial plans to invest in technology and risk management to support platform scalability
Company expects expansion initiatives to drive higher partner revenue in upcoming periods

Result Drivers
SINGLE PARTNER CREDIT EXPENSE - Co said Q2 net loss was primarily due to $68.8 mln credit expense tied to one BaaS partner
LOAN AND BaaS PROGRAM GROWTH - Co reported 9% loan growth and higher BaaS program income, citing expansion of partner relationships and product offerings
TECHNOLOGY MODERNIZATION - Co said technology upgrades improved operational efficiency and partner experience

Company press release: ID:nGNX74CdCx

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Loss
 
$42.1 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Coastal Financial Corp (EVERETT) is $105.00, about 48.6% above its July 29 closing price of $70.66
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
July 29 - FinWise Bancorp Q2 net income falls on higher loan loss provisions
July 28 - Summit State Bank posts Q2 loss on higher credit provisions
July 29 - SoFi's unchanged profit forecast tempers record quarter, revenue outlook lift

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)